LIME REALTY GROUP strongly recommends checking out Mortgage News Daily for the most recent and up to date information on rates. That’s part of our daily routine and if you’re following the rates, it should be part of yours too.
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Today, we’re at 3.65% for a 30 yr. fixed. Just a couple weeks ago we were over 4%. It feels like the mortgage rate is yo-yo’ing much like gas prices.
It’s hard to put your finger on exactly what is driving the dips and peaks of the rate. There’s a great deal of turmoil in the markets and they’ve hampered a steady growth of the rate as well as created an environment of uncertainty among home buyers and sellers.
For home buyers, the lower rate means their money has more value. They can get more house for their money. For sellers it can also be good because more people qualifying for mortgages means there’s more competition for properties. More interest in what they’re selling creates a strong position for the seller and allows them to pick and choose from offers they receive.
Under the right circumstances, this could be an overwhelming success for every side of the sale; however, the market instability and the uncertainty of everything from Iran’s nuclear program to competition from emerging global super powers for resources like oil that are causing many people to behave as if they were right back in the recession. People are being cautious with their money. Even lower fuel prices hasn’t convinced a majority of Americans to travel for holidays or summer vacations.
This apprehension and suspicion as well as political unrest in our own country has contributed to a limited and lighter rebound than we anticipated.
However, the rise and fall of the mortgage rate should still be treated as if it were in a continuous increase. If you like the look of 3.65%, lock the rate in now. There’s never a guarantee the rate will hold or go lower. You can lock in a rate and then if it continues to fall, you can let the higher rate go and lock into the new lower. But if it turns and starts moving up, you’ll be grateful you locked in lower.
Betting on a direction of the rate is a risky and dangerous game. Be smart, find a rate that fits in your budget and allows you to get the house you wanted and lock it in.
Have more questions or want to strategize? Call the experts at Lime Realty and let us help you get informed. Call today.